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A wise man's advice for PE deal seekers!
A wise man's advice for PE deal seekers!
A wise man's advice for PE deal seekers!
A wise man's advice for PE deal seekers!
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A wise man's advice for PE deal seekers!

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  • 1. Expanza Knowledge Series www.expanza.in
  • 2. A wise man’s advice on PE deals! : Ankita MohnotIf  we  ask  1000  entrepreneurs  what’s  their  biggest  barrier  in  doing  business,  number  1  response  will  be  lack  of  funds.At  various  points  they  feel  a  PE  fund  can  help  them.  Not  just  with  money  but  also  with  a  broader  outlook  and  the  PE  investor’s  experience  of  helping  other  businesses.Now  how  to  approach  a  PE  fund?Before  you  go  for  the  search,  deDine  it  for  yourself.Why  do  you  want  the  money  in  the  7irst  place?To  get  out  of  Dinancial  stress  or  you  need  it  for  growth?There  are  mainly  2  types  of  PE  Dirms   • Stressed  PE  Firms • Growth  oriented  PE  DirmsStressed  PE  7irm:  Are  those  PE  Dirms  which  prefer  investing  in  companies  under  stress,  or  declining  proDits.  Their  professionals  are  experts  in  turning  around  such  cases.They  look  to  the  stress  but  at  the  same  time  focus  on  the  potential  of  the  business.  They  will  evaluate  if  they  can  convert  it  in  a  proDit  making  business.Their  objective  is  to  sell  it  at  much  higher  value  than  it  had  purchased  it  on.  This  is  a  kind  of  very  risky  investment  coupled  with  a  big  challenge.It’s  a  different  kind  of  mindset  altogether  and  you  need  to  approach  these  investors  with  a  clarity  in  your  mind.Ask  yourself:  What  is  the  true  potential  of  my  business?  Why  can’t  we  achieve  it  on  our  own  strengths?  Except  funds  what  other  factors  are  stopping  us?Be  ruthless  with  yourself.  These  questions  will  come  up  at  some  stage.
  • 3. Growth  PE  Firm:  These  are  PE  Dirm  which  invest  in  companies  already  making  proDit  but  they  need  to  invest  in  the  business  to  enhance  their  competitiveness  in  the  marketplace.It  might  be  for  new  technology,  getting  into  new  areas,  or  to  achieve  true  potential  of  their  business.Once  you  are  clear  on  your  need  for  fund,  the  next  question  is:How  much  do  you  need?  Investors  have  their  own  parameters  about  minimum  and  maximum  limit  on  funds.  Your  case  might  be  strong  but  a  fund  which  deals  in  millions  of  dollars  won’t  be  interested  in  a  deal  of  say  some  20  crores.Knowing  your  needs  will  help  you  narrow  down  your  search.Now,  the  next  Dilter  in  your  search  will  be:  The  industry.PE  investors  like  to  play  in  certain  industries.  Simply  because  they  have  expertise  and  experience  in  these  industries.  They  know  the  best  practices  and  bench  marks.  They  also  know  the  best  partners  who  can  compliment  your  strengths.It  works  better  for  you  as  well.  Be  very  clear,  more  than  even  the  money  it’s  their  experience  which  counts.  In  a  nutshell:Know  why  you  need  the  money?How  much  you  need?Apart  from  money  what  other  expertise  you  are  looking  for  your  business?It  will  help  you  get  a  better  PE  deal  for  sure...............................................................................................................................................................
  • 4. Presented  by:Expanza  Access  Limited.www.expanza.inWe  are  a  SME  consultancy  based  at  Mumbai,  India.For  any  funding  related  query  connect  with  us:Connect:  info@expanza.in91-­‐22-­‐42100000All  rights  reserved.  You  are  free  to  share  the  report  as  is,  without  any  changes.

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